ERC launches off-peak power stimulus effort

Large factories targeted to reduce energy load

The Energy Regulatory Commission (ERC) has launched a new programme to encourage large power consumers nationwide to avoid electricity usage during peak hours in an effort to cut budget expenditure for the development of new power plants over the next decade.

The country may face an electricity shortage because as new power plants are stalled and natural gas pipelines from the Gulf of Thailand and Myanmar require frequent closure for maintenance.

The country’s power generation depends on natural gas for roughly 65% of total fuel and energy.

Viraphol Jirapraditkul, ERC’s commissioner, said it will kick off the Demand Response programme, aiming to cut peak power demand from large consumers to a total of 1,000 megawatts.

Large consumers are mostly companies and factories, usually consuming more than 1,000 kilowatts per firm.

Peak hours are traditionally from 9am to 10pm.

“We want large companies and factories to apply for the programme, starting from a pilot in August that is expected to be implemented fully next year,” he said. “The ERC will offer a special rate for any applicants to shift their power usage during 1.30pm3.30pm to other hours with a discount of 5-10% per kilowatt-hour [unit] in their power bills.”

Normally, the peak hour rate is around 4.12-4.35 baht per unit while off-peak hours cost 2.61-2.66 baht.

After the programme launches, large companies and factories will subjected to pay an extra 9.16-9.66 baht when they use the power during 1.30-3.30 pm.

Mr Viraphol said these two hours see peak demand every single day and affects to country’s spending for new power plants.

Every megawatt of capacity in a fossilfired power plant requires US$700,000 (22.5 million baht) to $1 million investment.

“The ERC believes that encouraging lower power consumption can work, and expects to curb power demand by 1,000MW during peak hours,” he said.

But the programme is still crucial for the country’s energy development policy although Thailand has huge power reserve of more than 30% for 2014-23.

The country needs to have an emergency plan to handle the possibility of gas disruptions, said Mr Viraphol. He said state utilities can enrol in the programme at branches of the Metropolitan Electricity Authority and Provincial Electricity Authority.